Shivalik Bimetal Controls Ltd (SBCL)

https://www.qulectra.com/industries

A simple explainer on applications of a Current Sensing Module.

1 Like

Good Article on the company and its future prospects.

6 Likes

Moneycontrol are too late to discover it, it’s trading at high valuations, most of the future gains are already factored in.

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Trendlyne has also assigned Expensive Valuation & technically Netural Rating

Pl don’t take offence but if you trust the judgement of Trendyline you will never be able to catch a multibagger.

I have monitored some of my portfolio stocks including Shivalik Bimetal over last 2 years. It was always shown as an expensive star after it crossed 150 levels(pre bonus price).

So pl be informed about the value of these platforms. Their data is very quantitative and lacks quality of analysis which only a human mind can do.

44 Likes

Disc: Invested

Some of the largest traditional automakers are experiencing electric vehicle growing pains and pulling back on production.

Why it matters: Consumer demand is falling behind lofty projections drummed up by manufacturers and other car-industry stalwarts.

https://www.axios.com/2024/01/19/ev-cars-ford-lightning-gm-chevy-blazer-cuts

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Couple of questions:

  1. May be I missed in the thread, but is there any thing which stops SBCL to provide its Shunt Resistor to 2W EV? across the thread could only find mention of 4W EV (per vehicle volume high) nothing on 2W (base volume is high). if nothing stops its, do we have a sense where its with the likes of EV OEMs like Ola, Ather, Bajaj etc?

  2. Additionally, read in the thread that SBCL got PLI first stage approval, so does it mean that if it does end up getting the final PLI approval, then more capex may happen?

  3. For Smart Meters, say Made in China is not promoted in India (for purely technical reason for Smart Meters can be controlled remotely and can affect power grids), how will it be possible for SBCL will be to provide shunt resistors and relay/contact material for smart meter opportunities in non-Indian markets (unless its driven by political alignments between Indian and other countries) ?

  4. While they have explained why they maintain 4 months of inventory (1 month each across shipping, custom, manufacturing, inventory/FG) the actual inventory days are trending more in the 6-8 months, why would that be?

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Results are out. Big YoY and QoQ drop. This will correct further I think

Please check consolidated numbers, YoY bottom line is actually up!
QoQ material costs have gone up, seems biggest contributor to lower PAT, together with slight decline in sales. Also ‘other income’ decreased.

Disc: invested, smallest holding

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Valuations wise the flat profit and single digit revenue growth is pretty bad optically.

Was this as per expectation or came out of the blue?

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Looking at stock price action for last few weeks, I would guess market has seen it coming. Now concall commentary would be important.

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If I remember correctly, during Q2 concall, the Management did indicate next 2 quarters (not sure 1 or 2) would be muted and these results surely do appear on the expected lines.

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True… earnings expected to pick up from q1-25

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During concall, promoters have clarified that no further stake sale is planned in near future. This should take away investor concerns

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SBCL_Q3_Conncall Highlights (Source :Screener Notes)

• Q3 FY24 total income increased by 4.31% to Rs.112.17 crore
• EBITDA for nine months rose by 4.74% to Rs.81.03 crore
• Profit after tax improved by 3.56% to Rs.55.64 crore
• Declared an interim dividend of 35%, Rs.0.70 per equity share
• Significant growth in Thermostatic, Bimetal, Trimetal segments in Q3 and nine months FY24
• Positioning well in Asia region for global electrification landscape
• Challenges in America, particularly in Shunt Register category
• Shunt sales split: 65-70% automotive, 13-14% energy meters, 8% energy storage
• Confident in ability to navigate market dynamics and deliver value with solid cash position of Rs.25 crore
• Working on business plans and feasibility study for Metalor MOU for Bimetal JV
• Contact business EBITDA margin at 11-12%, expected to improve with new plant and higher volumes
• Capacity utilization for Shunt and Bimetal at 35-38%
• Bimetal gross margin: 44-46%, Shunt gross margin: 48-52%
• EBITDA margin for both products combined in the range of 22-26%

17 Likes

Hi Friends,
I see promoters remuneration is in higher side compared to other big companies

Does this is normal,please educate me…Thank you

Any indications when will growth start again?